As a follow up to our previous posts on digital assets and social media, the Federal Trade Commission recently published a Consumer Protection Data Spotlight on June 3, 2022. In the post, the FTC provides insights on the fraud reports submitted to the FTC from January 1, 2021 to March 31, 2022. According to the FTC, the fraud reports show that social media and digital assets are a “combustible combination for fraud” with nearly half of those who reported losing cryptocurrency to a scam saying that it “started with an ad, post, or message on a social media platform.” Since the start of 2021, more than 46,000 people reported losing over $1 Billion of cryptocurrency to scams, and during the reporting period, nearly four out of every ten dollars that was lost to a fraud that originated on social media was lost in crypto. This report is another example of agencies and courts taking note, and informing the public that the connection between social media and digital asset fraud is direct, and significant.
cryptocurrency
Social media and cryptocurrency fraud


By Susan Ross (US) & Paul Guirguis (US) on
Creators of fraudulent crypto assets beware. A recent court decision supported investors, creators and marketers of legitimate crypto assets, and the integrity of the crypto asset market as a whole.
While the creator of BitConnect remains at large and is facing his own indictment for his role in the scheme that allegedly defrauded investors of $2.4 Billion, this case focuses on the promoters and marketers of a commodity known as BitConnect Coin.
Celebrity Endorsements, Cryptocurrencies, and Initial Coin Offerings

By Susan Ross (US) on
Our readers may recall that 2017 brought warning letters from the U.S. Federal Trade Commission to celebrities who had posted some photos on Instagram and the FTC has recently taken action regarding some undisclosed “material connections.” A post on our…